With its stock down 6.4% over the past three months, it is easy to disregard Horace Mann Educators (NYSE:HMN). It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. In this article, we decided to focus on Horace Mann Educators' ROE.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.
View our latest analysis for Horace Mann Educators
How Is ROE Calculated?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Horace Mann Educators is:
4.7% = US$59m ÷ US$1.3b (Based on the trailing twelve months to June 2022).
The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.05.
What Is The Relationship Between ROE And Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
A Side By Side comparison of Horace Mann Educators' Earnings Growth And 4.7% ROE
On the face of it, Horace Mann Educators' ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 11% either. Thus, the low net income growth of 2.9% seen by Horace Mann Educators over the past five years could probably be the result of the low ROE.
Next, on comparing with the industry net income growth, we found that Horace Mann Educators' reported growth was lower than the industry growth of 14% in the same period, which is not something we like to see.
NYSE:HMN Past Earnings Growth September 7th 2022
Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Is HMN fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Is Horace Mann Educators Making Efficient Use Of Its Profits?
While Horace Mann Educators has a decent three-year median payout ratio of 36% (or a retention ratio of 64%), it has seen very little growth in earnings. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
Moreover, Horace Mann Educators has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 37%. However, Horace Mann Educators' ROE is predicted to rise to 11% despite there being no anticipated change in its payout ratio.
Summary
In total, we're a bit ambivalent about Horace Mann Educators' performance. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
在过去的三个月里,其股价下跌了6.4%,人们很容易忽视贺拉斯·曼教育公司(纽约证券交易所代码:HMN)。市场似乎完全忽视了该公司基本面的积极方面,而决定更多地关注负面方面。长期基本面通常是推动市场结果的因素,因此值得密切关注。在这篇文章中,我们决定关注贺拉斯·曼教育家的净资产收益率。
股本回报率或净资产收益率是股东要考虑的一个重要因素,因为它告诉他们他们的资本再投资的效率。换句话说,它揭示了该公司成功地将股东投资转化为利润。
查看我们对Horace Mann教育者的最新分析
净资产收益率是如何计算的?
这个股本回报率公式是:
股本回报率=(持续经营的)净利润?股东权益
因此,根据上述公式,贺拉斯·曼教育工作者的净资产收益率为:
4.7%=5900万美元×13亿美元(基于截至2022年6月的12个月的往绩)。
“回报”指的是一家公司过去一年的收益。因此,这意味着股东每投资1美元,公司就会产生0.05美元的利润。
净资产收益率与盈利增长之间有什么关系?
到目前为止,我们已经了解到净资产收益率衡量的是一家公司创造利润的效率。根据公司将这些利润再投资或“保留”多少,以及这样做的效率如何,我们就能够评估一家公司的收益增长潜力。一般来说,在其他条件相同的情况下,股本回报率和利润留存较高的公司比不具备这些特征的公司有更高的增长率。
Horace Mann教育工作者的收入增长和4.7%净资产收益率的并列比较
从表面上看,霍勒斯·曼教育家的净资产收益率(ROE)没有太多可谈的。一项快速的进一步研究显示,该公司的净资产收益率(ROE)也不及11%的行业平均水平。因此,Horace Mann教育工作者在过去五年中看到的2.9%的低净收入增长可能是低ROE的结果。
接下来,对比行业净收入增长,我们发现贺拉斯·曼教育人的报告增长低于同期14%的行业增长,这是我们不愿意看到的。
纽约证券交易所:HMN过去的收益增长2022年9月7日
盈利增长是股票估值的一个重要因素。投资者下一步需要确定的是,预期的收益增长是否已经计入了股价。这有助于他们确定这只股票是为光明还是黯淡的未来做准备。HMN的价值公平吗?这张关于公司内在价值的信息图包含了你需要知道的一切。
霍勒斯·曼的教育工作者是否有效地利用了它的利润?
虽然Horace Mann教育工作者的三年平均支付率为36%(或留存率为64%),但收入几乎没有增长。因此,可能还有其他一些原因来解释这方面的缺乏。例如,这项业务可能正在衰落。
此外,霍勒斯·曼的教育工作者至少在十年或更长时间内一直在支付股息,这表明管理层肯定已经意识到,股东更喜欢股息,而不是收益增长。根据最新的分析师预估,我们发现该公司未来三年的派息比率预计将稳定在37%。然而,Horace Mann教育者的净资产收益率预计将上升到11%,尽管其派息率没有预期的变化。
摘要
总体而言,我们对贺拉斯·曼教育工作者的表现有些矛盾。虽然该公司的利润留存率确实很高,但其低回报率可能正在阻碍其收益增长。既然如此,最新的分析师预测显示,该公司的收益将继续增长。要了解更多有关该公司未来收益增长预测的信息,请查看以下内容免费报告分析师对该公司的预测,以了解更多信息。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。